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lys-0071 [83]
3 years ago
7

You purchase one IBM July 120 put contract for a premium of $5 (per share). You hold the option until the expiration date when I

BM stock sells for $123 per share. You will realize a ______ on the investment. (Hint: Recall that each put covers 100 shares.)a. $200 profitb. $200 lossc. $300 profitd. $300 losse. $500 loss
Business
1 answer:
Art [367]3 years ago
8 0

Answer: $200 loss

Explanation:

When you purchase an option, you assume that the share price will gain a higher amount that the premium paid. In this case, it did not.

For this put option, you paid a premium of $500 ($5 * 100)

This is because there are 100 shares in each put.

The stock rises to $123 and you decide to sell at this price, you will achieve $300 increase on the shares:

(123 - 120) * 100 = 300

The shares had a gain of $300 but you paid $500, leaving you with a loss of $200 on the investment.

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In an effort to prevent future financial crises like the stock market crash of 1929, in the 1930s Congress: Multiple Choice pass
kumpel [21]

In an effort to prevent future financial crises like the stock market crash of 1929, in the 1930s Congress formed the FDIC.

<h3>What is the FDIC?</h3>

The Federal Deposit  Insurance Corporation (FDIC) was formed by th Congress after the stock market crash of 1929.Bank run was attributed to be one of the causes of the great depression. The FDIC increases confidence of depositors in banks because they insure the deposit of bank customers.

To learn more about the federal deposit insurance corporation, please check: brainly.com/question/827771

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6 0
2 years ago
Which three factors decrease because of protectionism? competition job security domestic production goodwill with trade partners
ludmilkaskok [199]

answer:

competition, goodwill with trade partners, and importation of goods

3 0
2 years ago
Imports of goods and services are items that​ _____ in the united states​ _____ the rest of the world.
geniusboy [140]
Imports of goods and services are items that​ households, firms, and​ governments <span>in the United States​ buy from the rest of the world.
Correct answer: B
Import is part of international trade</span><span>s, which denotes the change in ownership of material resources and services between one economy and another.</span><span>
</span>
7 0
3 years ago
Emery Corporation Balance Sheet Income Statement​Assets:Cash ​$250,000​Sales​ (all credit) ​ $8,000,000Accounts receivable ​450,
san4es73 [151]

Answer: B. ​48.48%

Explanation:

Debt ratio = Total Liabilities/ Total Assets

Total liabilities = Accounts payable ​+ ​Notes payable + Long−term debt

= 100,000 + 450,000 + 1,050,000

= $1,600,000

Total Assets = $3,300,000

Debt ratio = 1,600,000/3,300,000

= 48.48%

4 0
3 years ago
"sends an employee to the bank four times per day to make deposits in an interest-bearing account that protects the store's reve
STALIN [3.7K]

Answer:

Shoe Leather Cost

Explanation:

The effort and time spent to eliminate the effect of the inflation is known as Shoe leather cost.

In this scenario, the company is bearing inflation every second and depositing the amount in the bank by sending the employees four times a day with interest rate that is higher than the inflation will help in reducing the cost of the money held in till. So such efforts and time spent to control inflation is Shoe leather cost. Here the costs, time and effort are sending the employee four times a day to deposit money in the bank.

6 0
3 years ago
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